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Arizona Company provided the following information regarding its most recent year of operations Administrative salaries Direct labor Direct raw material Marketing and distribution costs Overheads
Arizona Company provided the following information regarding its most recent year of operations Administrative salaries Direct labor Direct raw material Marketing and distribution costs Overheads costs Product design and testing Research and development Sales revenues Sales salaries and commissions Warranty costs $ 24,006 48,000 80,000 60,000 36,000 30,000 40,000 410,000 54,000 4,000 Number of units produced Number of units sold 20,000 20,000 Required Determine the following amounts (a) Total product costs (b) Total upstream costs (c) Total downstream costs (d) Product cost per unit (e) Total cost per unit, including product costs and upstream and downstream costs (f) The selling price per unit that would be required if the company wishes to earn a profit margin equal to 25% of total cost (g) Comment on the company's profitability at its current selling price
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